A strong and clear impulsive structure on NZDUSD that started near December of last year found a top at the 0.7435 level. We labelled this part as wave 3) of a bigger impulsive cycle. That said, the following three-wave retracement down from the same level can be regarded as a complex correction of wave 4). In this case, we see a double zig-zag pattern (W-X-Y) in the making, with final wave Y approaching some interesting support regions, near the 0.7120/0.7160, where Fibonacci ratios of 38.2 and 50.0 can offer support and a reversal zone. Also, we see price trading near the upper base channel line, which can also slow bears down and push price towards new highs.

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NZDUSD, 4h

All being said, a minor five-wave rally would suggest a completed wave 4) correction, and wave 5) to be in progress.

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